Call Us for a Consultation: 877-593-7440
A: Typically our clients when they first came to us have three things in common:

  1. They have a significant amount of unsecured debt such as credit cards, normally $10,000 or more
  2. They are typically on time with their payments but are finding their balances are not going down
  3. They are stretching their budget to make their monthly payments, often able to only make the minimum or slightly over the minimum in payments

Other qualifications include hardships due to recent events such as:

  1. Changes recently that have made things more difficult for you such as cutbacks at work, job loss, medical problems, or inability to afford the minimum monthly payments
  2. Needing help with these debts from your spouse or family members
  3. Having to cut back on other areas of your such as college fund, retirement savings or family activities just to stay current on your payments
A: Here’s a quick overview of how the United Debt Counselors debt settlement process works:
1.      Once you have enrolled and at your option, you may setup a special purpose savings account with an independent third party financial institution.  Generally, we suggest using Global Client Solutions, LLC (GCS), but the ultimate choice remains with the client. The funds in this account will be used towards paying our fees and will eventually accrue and be the funds used to settle your debts.
2.      For funds to build up in your dedicated program account, we will ask you to agree to an automatic draft of an agreed-upon monthly program payment from your regular bank account. If at any time you are able to put extra funds into the account, you may be able to achieve settlements sooner. There’s no penalty for saving more than the monthly scheduled amount.
3.      How we are paid: for the first 3 months, 100% of the payments go to cover our fees. For the next 12 months, the program payment is split, with half going towards savings and the other half towards our fees. After this, 100% of the funds are used to pay off your settlements.
4.      Once you have enough funds in your account, we will approach the first creditor with a settlement offer, normally around 30-40% of what is owed. Once a settlement offer is negotiated and you agree to it, you may transfer funds directly from your dedicated savings account to pay the settlement.
5.      This process is repeated until all debts are settled and you are debt-free!
A: Your credit score will be negatively impacted while you are in the program. However, assuming you are able to successfully complete our program, if you are able to manage your finances moving forward, you will have the opportunity to rebuild your credit.
A: Any credit cards that are enrolled in the program for debt settlement will not be able to be used by you if you choose to stop making payments on those cards in an effort to bring your creditors to the table to negotiate down your debts. However, UDC’s program is designed around your specific financial situation. Working together we can analyze whether it could make sense to leave a card out of the program to use for emergencies. We base this off of a number of factors such as Bank Conflict, available credit on a specific card, and/ or interest rates. We will make a recommendation to you on what we believe will benefit you the most, but ultimately the decision will be yours
A: United Debt Counselors negotiates settlements every day. Our professional negotiators have established relationships with many of the largest credit card companies. While we cannot guarantee that any creditor will settle for a certain percentage, chances are good that they will settle for a significant reduction in the amount owed.
A: Before we finalize any settlements on your account, we ask your creditors for a settlement letter.

 

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